Susanna Riva The results of the US midterm elections , which gave the Democrats the majority in both the House and Senate, prompted a cautiously optimistic reaction among major European indices. Investors, fearing negative repercussions from a potential clash with President Donald Trump, began to weigh the risks, revealing a slight positive balance.
Major European stock markets rise after Democratic election confirmation
In Paris, the CAC 40 rose 0,18% , in London the FTSE 100 gained 0,16%, and in Frankfurt the DAX rose 0,09% . These movements, although limited, helped to contain fears of a sudden jolt to the markets due to the election outcome. Milan, on the other hand, closed almost flat, with a loss of -0,01% , demonstrating how the Italian capital is more sensitive to fluctuations in the energy sectors.
Impact of the election outcome on technology sectors and artificial intelligence
The Nasdaq rose 0,7% during the session, boosting the tech sector in Europe as well. However, analysts fear that a complete Democratic takeover of the House could dampen investment in artificial intelligence and data centers , sectors the Republican Party has been most vocal about.
Potential political stagnation, fueled by a conflict with President Trump, could translate into increased volatility for stocks related to these technologies.
Energy, commodities, and the performance of Italian stocks
Geopolitical tensions in the Middle East had a direct impact on oil prices . Brent crude fell 1,3 % to $103,4, while WTI lost 0,5% to close at $95,86. Amsterdam gas also fell 3,8% to €91,24 per megawatt hour. Against this backdrop, Italian energy stocks showed signs of weakness: Tenaris fell 2,4% and Eni 1,8% . Meanwhile, growth stocks such as Ferrari (+4,5%), Amplifon (+2,98%), and Avio (+2,53%) led the Italian Stock Exchange.
Currency trends and short-term outlook
The euro-dollar exchange rate stabilized around 1,1194, while the euro-yen remained at 177,38. The dollar-yen cross fluctuated around 158,46. Market experts predict that once the runoffs are concluded, psychological pressure should ease, allowing markets to regain some composure. However, a landslide for the Democrats could still trigger a targeted sell-off in AI and data center stocks, while a Republican hold on power in the House of Representatives could foster faster gains.